Iraq imposes Dinar-Only policy for domestic transactions
10,000 Iraqi dinar bills. Photo: AFP
Baghdad (IraqiNews.com) – The Central Bank of Iraq has announced its plan to limit all internal commercial transactions to the Iraqi dinar, starting as of 2024, in a significant move aimed at stabilizing its local economy.
According to Bloomberg, this change in policy comes as Iraq struggles economically despite the current market’s favorable background of high oil prices.
The worrisome difference between the official exchange rate and the rate at which the US dollar has been trading on the black market is one of the main factors that led to this decision. The dollar has been selling at a substantially higher rate of 1,550 dinars in the unofficial market than the official rate of 1,320 dinars per dollar.
This discrepancy has raised concerns about the stability of Iraqi dinar and the potential for inflationary pressures.